First Department Upholds Excess Insurer's Late Notice Disclaimer

In Martin Assoc. Inc. v. Illinois National Ins. Co., Martin had disclosed information to his attorneys and insurance broker which suggested a reasonable possibility that Martin's excess insurance might be implicated in an underlying personal injury action. Martin failed, however, to provide this information to Illinois National, Martin's excess insurer. Illinois National disclaimed coverage 26 days after Martin finally provided notice.  The First Department found that the disclaimer was timely as a matter of law, and also that Martin could not rely on notice provided by his co-defendants in the underlying action because, at all times, Martin's interests were adverse to the co-defendants.